There is a Chinese proverb that translates as: “It is always better to endure short-term pain than to allow the disease to remain untreated.” This aphorism offers great wisdom in the U.S. trade war with China.

In late August, the United States and China engaged in an artillery duel over tariffs. China imposed retaliatory tariffs on $75 billion worth of U.S. goods in response to Washington’s announcement that it was extending tariffs on an additional $300 billion worth of Chinese goods. President Trumpthreatened to use a national emergency to push for American companies to withdraw from China. Not surprisingly, China’s state-owned media continue to express disapproval of U.S. policy.

This latest trade war escalation triggered investor panic that drove global stock markets downward, devalued the Chinese RMB to a 11-year low, and pushed funds into sovereign bonds and gold to seek stability.